Thursday, 27 November 2014

Gap trading on AAPL

The main focus of my technical trading strategy is using previous support and resistance levels combined with the price action around these to indicate the next potential move.

One of the useful opportunities is gap trading. When the market opens higher or lower than the previous close, it offers an immediate support or resistance level.

The gap highlighted in the Apple daily chart -- and the first day close above -- is a good buying opportunity. The potential to buy the stock at $81 with a stop at 80 if required saw the market closing strongly through the previous highs and can then be held with a stop moved to $82 for a risk free trade.

Six weeks later and another good gap up leads to further strong gains.

No comments:

Post a Comment